Vivendi Chief Hints He’s in No Rush to Sell Universal

In his first visit to the company’s New York offices, Vivendi Universal Chief Executive Jean-Rene Fourtou signaled to his top managers Thursday that the troubled French media giant would remain an international company.

In meetings with top executives at Vivendi’s U.S. headquarters and at Universal Music Group, Fourtou stressed the importance of having a multinational executive team.

Although Fourtou did not give specifics on his vision for Vivendi, his message still surprised the New York staff, which had been expecting Fourtou to return the company to its roots as a French water utility and quickly sell off Universal Studios and other entertainment businesses amassed by former Vivendi CEO Jean-Marie Messier.

The apparent change in approach reflects the difficulties Fourtou faces in unraveling the entertainment assets stitched together by Messier. Bleak market conditions, which have depressed media stocks, could hamper any efforts to sell those assets quickly, investment bankers say.

“The fact is this is still a very open story.... They’re still trying to work out what Vivendi’s going to look like when it’s done,” said Michael Nathanson, an analyst with Sanford C. Bernstein & Co.

Fourtou is meeting with his American executives before a pivotal Sept. 25 board meeting in Paris, where Vivendi directors are expected to decide on a strategy for the firm. Since Fourtou replaced Messier in July, he has been working frantically to stave off a cash crisis by securing bank loans and preparing to sell assets, including publishing and pay-TV operations.

Some of Vivendi’s U.S. executives are weighing a plan to eventually sell or spin off entertainment assets into a separate company that still would be managed by Vivendi Universal Entertainment Chairman Barry Diller. Several parties have expressed interest, including cable-TV mogul John Malone, Viacom Inc. and General Electric Co.’s NBC, sources said.

Fourtou also met Wednesday with Diller, according to sources.

Fourtou had breakfast Thursday with Vivendi board member Edgar Bronfman Sr. before meeting with Vivendi staff and then visiting with Universal Music Chairman Doug Morris and touring the Island Def Jam studio.

Today Fourtou is scheduled to visit Universal Studios in Universal City and meet with studio President Ron Meyer and Universal Pictures Chairman Stacey Snider.

Fourtou, Diller and Meyer also are having lunch with DreamWorks SKG partners David Geffen and Steven Spielberg. Universal has a long-standing distribution relationship with DreamWorks. Geffen has said DreamWorks has no interest in buying Vivendi’s U.S. entertainment businesses.

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Brown reported from New York and Verrier from Los Angeles. Times staff writer James Bates contributed to this report.